Excluding certain one-time items, Target had earnings of $1.19 per share. But that also includes 21 cents of dilution related to the company's Canadian market entry.

Revenue increased 2 percent to $17.12 billion from $16.78.

Analysts had expected earnings of 96 cents per share on revenue of $17.27 billion.

Target also warned that its full-year earnings likely will come in at the low end of its already reduced guidance due to continued cautious spending by U.S. consumers. In May, Target reduced its forecast to a range of $4.70 to $4.90 per share, down from $4.85 to $5.05 per share.

By John Vomhof Jr. – Staff reporter/broadcaster, Minneapolis / St. Paul Business Journal